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Tds on professional service

334 views 7 replies

Dev Kumar

Accounts Manager

108 Points Posted on 05 January 2021

if a person provide a bill of Rs 20K as a professional, TDS not deducted by a company on that bill. next month he provide another bill of same amount, then company is liable to deduct TDS on 20K or 40K as his limit crosses the eligibility. Second question is what amount and month is to be shown in TDS return?

Replies (7)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 05 January 2021

No ,194j is applicable on seperate bill as in your case bill amount is 20000 rupees less than 30000 rupees.

CA Sachin M Jain

CA | GST | Refunds | Advisory | Litigati

1463 Points Posted on 05 January 2021

The said company is not liable to deduct TDS on threshold upto Rs. 1,00,000 or Rs. 30000 per Invoice.
If at all the company will deduct, then the company needs to deduct on Full Amount (including the previous invoices).

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Smit Shah

524 Points Posted on 05 January 2021

Liable to deduct on whole amount i.e.60000

Balamurali Unnithan MS

STUDENT

1631 Points Posted on 05 January 2021

As per 194 J - TDS on professional income , amount exceeds Rs .30000 , then only tax deduction applied !

Krishna Chaudhary

Accountant

4533 Points Posted on 08 January 2021

TDS applicability when single bill exceeds 30,000 a lump-sum exceeds 1 lakh

Smit Shah

524 Points Posted on 08 January 2021

Please refer clause (B) provisio to section 194j it is during the financial year and not in a single transaction.

Krishna Chaudhary

Accountant

4533 Points Posted on 09 January 2021

As per Section 194J, each item or independent payment has a threshold maximum limit of INR 30,000. TDS under this section also applies for the fees or remuneration paid to the company's director even if the payment is not part of the main salary. In such cases, the INR 30,000 limit does not apply here.